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Srirangan
11 Sep 05,, 08:11
Navy strikes a bargain, 6 submarines at 2/3rd's the price

URL: http://www.india-defence.com/reports/317
Date: 10/9/2005
Source: DefenceIndia

After extracting a 3.5% discount from Airbus on the Indian airlines (IA) aircraft deal, New Delhi has renegotiated the price for purchase of ‘Scorpene’ submarines.

According to government sources, the defence ministry has managed to cut the deal size to $1.5 billion from the originally estimated $2.4 billion and has also protected itself from cost escalation due to foreign exchange fluctuations. India plans to purchase six submarines from French defence manufacturers DCN and Thales.

The sources told FE that a formal announcement is expected to be made during Prime Minister Manmohan Singh’s official visit to France on September 12.

In July, at the request of India, commercial teams of the French companies and the MBDA came for renegotiating the deal.

The submarines are to be delivered between 2010 and 2015. As part of the deal, the submarines would be armed with MBDA’s SM-39 Exocet anti-ship missiles. However, Naval headquarters is worried that its fleet “particularly the submarine strike arm” was de-commissioning vessels faster than it can acquire them.

Srirangan
11 Sep 05,, 08:12
Doesn't a stronger Euro (vis-a-vis the US dollar) hurt the French even more?

indianguy4u
11 Sep 05,, 10:12
Doesn't a stronger Euro (vis-a-vis the US dollar) hurt the French even more?
It shows that they have been overcharging for so much time.

Srirangan
11 Sep 05,, 10:15
Simple economics, one buyer too many sellers.

indianguy4u
11 Sep 05,, 10:18
Will US allow EU to sell arms to chinese. And if they do sell than will chinese flood the market with their cheapcopy of western arms like they did of russian weapons.

bull
12 Sep 05,, 12:07
Will US allow EU to sell arms to chinese. And if they do sell than will chinese flood the market with their cheap copy of western arms like they did of russian weapons.

they wont buy cheap,when it comes to arms.
Clothes yes,but then that too are meant for the low/middle class in europe.

bull
12 Sep 05,, 12:09
Doesn't a stronger Euro (vis-a-vis the US dollar) hurt the French even more?



They will just hedge the position.As of today euro/usd is at 1.2364 .they will buy a futures contract with a near strike price and hedge it.The cost is only the brokerage they pay,which will be like .0002 euro per contract.

indianguy4u
12 Sep 05,, 12:57
they wont buy cheap,when it comes to arms.
Clothes yes,but then that too are meant for the low/middle class in europe.
Who buys chinese weapons in the first place? I was talking in that perspective :).

I was also speculating on IPR of original equipment mfgs. What about this things. Will EU in the hurry to make profits leave this in the grey.

shadow
12 Sep 05,, 14:49
Chirac confirms India's purchase of 6 Scorpene submarines, 43 Airbus planes
09.12.2005, 07:57 AM

PARIS (AFX) - President Jacques Chirac confirmed an order from India for six Franco-Spanish Scorpene submarines, alongside a 43-plane order for Airbus, as he received visiting Indian Prime Minister Manmohan Singh at the Elysee palace.

The Scorpene order is valued at 2.4 bln eur, while the order for 20 Airbus A-319s, 19 A-321s and four A-320s from Airbus is worth 1.8 bln eur.

Both deals had been in the works for several years. The Scorpene submarines are built by France's DCN shipyards and Spain's Izar.

'I welcome the prime minister confirming to us today India's decision concerning the purchase of six Scorpene submarines and 43 Airbus planes,' Chirac told journalists as he greeted Singh.

He called the deals 'a measure of the friendship, trust and cooperation' between their two countries.

Singh was the first foreign leader to see Chirac since the 72-year-old president was released from hospital last Friday after suffering what his doctors called a minor vascular problem.